The Stern Review on the Economics of Climate Change is a 700-page report released on October 30, 2006 by economist Nicholas Stern for the British government, which discusses the effect of climate change and global warming on the world economy. Although not the first economic report on global warming, it is significant as the largest and most widely known and discussed report of its kind.

Its main conclusions are that one percent of global gross domestic product (GDP) per annum is required to be invested in order to avoid the worst effects of climate change, and that failure to do so could risk global GDP being up to twenty percent lower than it otherwise might be.

Stern’s report suggests that climate change threatens to be the greatest and widest-ranging market failure ever seen, and it provides prescriptions including environmental taxes to minimize the economic and social disruptions. He states, "our actions over the coming few decades could create risks of major disruption to economic and social activity, later in this century and in the next, on a scale similar to those associated with the great wars and the economic depression of the first half of the 20th century."

The Stern Review has been criticized by some economists, saying that Stern did not consider costs past 2200, that he used an incorrect discount rate in his calculations, and that stopping or significantly slowing climate change will require deep emission cuts everywhere. Other economists have supported Stern's approach, or argued that Stern's estimates are reasonable, even if the method by which he reached them is open to criticism.

(From Wikipedia.com)

Click Here, Download Stern Review Final Report

The pre-publication edition of the Stern Review Report on the Economics of Climate Change is available to be downloaded either on a chapter-by-chapter basis or in parts covering broader themes.

Visit Stern Review on the Economics of Climate Change Official Website

Reviews:

'The Stern Review shows us, with utmost clarity, while allowing fully for all the uncertainties, what global warming is going to mean; and what can and should be done to reduce it. It provides numbers for the economic impact, and for the necessary economic policies. It deserves the widest circulation. I wish it the greatest possible impact. Governments have a clear and immediate duty to accept the challenge it represents.'
James Mirrlees, recipient of the Nobel Prize for Economics, 1996

'The stark prospects of climate change and its mounting economic and human costs are clearly brought out in this searching investigation. What is particularly striking is the identification of ways and means of sharply minimizing these penalties through acting right now, rather than waiting for our lives to be overrun by rapidly advancing adversities. The world would be foolish to neglect this strong but strictly time-bound practical message.'
Amartya Sen, recipient of the Nobel Prize for Economics, 1998

'The Stern Review of The Economics of Climate Change provides the most thorough and rigorous analysis to date of the costs and risks of climate change, and the costs and risks of reducing emissions. It makes clear that the question is not whether we can afford to act, but whether we can afford not to act. … And it provides a comprehensive agenda-one which is economically and politically feasible-behind which the entire world can unite in addressing this most important threat to our future well being.'
Joseph Stiglitz, recipient of the Nobel Prize for Economics, 2001

' … the world is waiting for a calm, reasonable, carefully argued approach to climate change: Nick Stern and his team have produced one.'
Robert M. Solow , recipient of the Nobel Prize for Economics, 1987

'The Stern Review of The Economics of Climate Change is a vital step forward in securing an effective global policy on climate change. Led by one of the world's top economists, the Stern Review shows convincingly that the benefits of early global action to mitigate climate change will be far lower than the costs. The report establishes realistic guidelines for action … . The Stern Review will play an important role in helping the world to agree on a sensible post-Kyoto policy.'
Professor Jeffrey D. Sachs, Director of the Earth Institute at Columbia University and Special Advisor to UN Secretary General

'The Economics of Climate Change sends a very important and timely message: that the benefits of strong, early action on climate change outweigh the costs. … Congratulations to Sir Nick Stern and his team for producing a landmark review which I have no doubt will strengthen the political will to change of governments around the world.'
Claude Mandil, Executive Director of the International Energy Agency

'When the history of the world's response to climate change is written, the Stern Review will be recognized as a turning point. … Sir Nicholas and his team have provided important intellectual leadership as humanity engages with its greatest challenge. … While the details will be debated, the main thrust of the report is clear and compelling - the expected benefits of tackling climate change far outweigh the expected costs.'
Cameron Hepburn, Elizabeth Wordsworth Junior Research Fellow in Economics, Oxford University

'Pay now to fix global warming or risk a worldwide economic depression later … The [Stern] report moves economic discussion of how humanity should deal with global warming to center stage …'
USA Today

'The overwhelming message of … [the] Stern review on the economics of climate change is that it is now time to move on from arguing about statistics to taking drastic action at an international level. … Even if Stern is only half right then … the consequence of doing nothing is still so dreadful that it ought not to be contemplated.'
The Guardian

'[The report's] basic point seems unassailable: failure to act now will exact much greater penalties later on … If people and industries are made to pay heavily for the privilege, they will inevitably be driven to develop cleaner fuels, cars and factories… '
The New York Times ‘This book will be invaluable for people everywhere who are interested in saving the planet…’ Building Engineer

'The Stern review makes two invaluable contributions. The first is that it recasts environmentalism as economics … Stern's second serious contribution is to provide a formula for durable environmentalism, one which binds business and government.'
The Times

'The [Stern] report argues that environmentalism and economic growth can go hand in hand in the battle against global warming … The report by Sir Nicholas Stern, a senior government economist, represents a huge contrast to the U.S. government's wait-and-see policies.'
Chicago Tribune

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